7 / 11
7
Al-Mazaya Holdings Weekly Real-
Estate Report points out that GCC
countries would be wise to improve
data capture mechanisms in order to
better demonstrate trends pertaining to
real estate investment, both in order to
better capitalise on investment flows
and to advertise opportunities to future
investors. Such data would also of
course be invaluable in terms of market
analysis and formulating strategy.
Within the Arab world, GCC countries
are the favourite destination for
investment, especially now that a
decline in the price of oil has brought
down construction costs and improved
real estate’s value proposition. GCC
countries are seen in many respects
by other Middle East countries as
examples of what can be achieved
when government is keen to support
business and inflation rates are well
regulated. GCC countries have well-
earned reputations for innovation, and
this makes them attractive to Arab
investors, particularly into real estate.
Mazaya Monthly Real Estate Report -
Week 2 - September 2015
Al-Mazaya Holdings Weekly Real-Estate
Report believes that as oil prices decline,
mega-project investment might counter-
intuitively increase as governments in
the GCC look to speed up the pace of
economic diversification. In this respect,
we believe tourist developments will
become more attractive than ever, as they
have a proven track record of delivering
strong returns around the year. We believe
there is plenty of room in the tourist market
in the Gulf for additional developments.
We also see plenty of scope for healthcare
developments, in line with a regional
drive to become a health tourism hub.
We conclude by pointing out Gulf
economies are very well poised to
attract considerable flows of foreign
investment into real estate over the
coming years, but we believe it is
imperative that governments lead the
way, demonstrating commitment to
the sector both through injections
of liquidity and by ensuring
bureaucracy is lifted while financial
incentives are optimised. If this can
be achieved, the future is bright.